KMG buys Boehringer's 'Rabon' livestock pesticide line

HOUSTON (CNI)--Chemicals distributor KMG Chemicals acquired the
Rabon livestock insecticide product line Thursday from
Germany's Boehringer Ingelheim Vetmedica for an undisclosed sum and
said it continues to eye additional acquisitions.

Although Houston-based KMG declined to reveal the purchase
price, the company did predict it expects the acquisition to add
$4m (Euro3.8m) in annualised revenues with an immediate impact on
earnings.

KMG said domestic livestock and poultry growers use the
Rabon line to protect their animals from flies and other
pests.

The deal includes no production facilities or personnel,
according to KMG. But the company said the deal will include
acquisition of equipment, inventory, product registrations and
other intangible assets.

David Hatcher, KMG's chairman and president, called the
acquisition his company's "second step forward into the
agricultural chemicals sector" and said the move will diversify
KMG's revenue stream.

Looking ahead, Hatcher said: "Due to current economic conditions
we are seeing more attractively priced acquisition prospects than
we have seen in several years. Because of this, we are
investigating financing alternatives in anticipation of the time
when we have appropriately leveraged our balance sheet with senior
debt."

He said KMG will continue to target "attractive acquisitions"
that will produce earnings immediately and serve "narrowly focused
markets."